Turkish Airlines (THY) has achieved another milestone in global aviation finance. The airline has pioneered the first-ever implementation of the SAAFI (Sompo AXIS Aviation Finance Insurance) model, a product developed in the field of insurance-backed aviation finance. This innovative method, used in the acquisition of next-generation aircraft, was publicly introduced at a ceremony held in Tokyo.
Insurance-Backed Financing for Airbus A350 and A321
Under the agreement, the financing of Airbus A350-900 and Airbus A321-271NX aircraft to be added to Turkish Airlines’ fleet will be supported by equity provided by Japan-based JP Lease, with Sumitomo Mitsui Banking Corporation (SMBC) also joining the process as a lender.
This financing package is secured with 100% insurance cover provided by insurance giants Sompo and AXIS. With the SAAFI product, Turkish Airlines has thus been able to acquire aircraft through a lower-cost and highly secure financing model.
Statement from Turkish Airlines: “Proud to Be the Launch Customer”
Assoc. Prof. Dr Murat Şeker, Chief Financial Officer and Member of the Board and Executive Committee at Turkish Airlines, shared the following remarks:
“With the support of our insurers Sompo and AXIS, our broker Willis, and our reliable partners SMBC and JP Lease, we have successfully implemented this innovative financing structure. We are proud to be the launch customer. Through solutions like this, we not only support our fleet growth strategy but also strengthen our financial flexibility.”
Global Stakeholders Commend Turkish Airlines
Tim Gaul, a representative from Sompo, noted that they had financed over 120 aircraft in the past eight years and stated, “Turkish Airlines is the first customer to benefit from this capacity. The SAAFI product has made a strong addition to our portfolio.”
Richard Jelf, Senior Underwriter at AXIS, expressed pride in Turkish Airlines being the first user and highlighted that this structure fills a significant gap in the industry.
Stuart Ashworth, Managing Director of Financial Solutions at Willis, commented on the first SAAFI transaction with Turkish Airlines, saying, “This solution presents a dynamic and sustainable model that supports a visionary airline.”
SAAFI: Ushering in a New Era in Finance
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Aircraft acquisition risk minimised with 100% insurance coverage
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A model example through the JP Lease – SMBC – THY partnership
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Lower costs, enhanced credit security
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A globally standardised solution with international stakeholders
With the SAAFI model, Turkish Airlines is not only securing its own fleet investment strategy but also paving the way for a new, globally exemplary model in aviation finance.
